DNZ sells two Auckland properties for $2.9M

DNZ sells Auckland properties for $2.9 mln to repay bank debt

By Jason Krupp

Aug. 24 (BusinessDesk) – DNZ Property Fund Ltd., which listed on the NZX earlier this month, has completed the sale of two vacant industrial sites near the Auckland International Airport for $2.9 million. The proceeds of the sale will be used to repay bank debt, the fund said in a statement today.

DNZ, which invests in properties, will incur a loss of $53,000 on the sale, with a $58,000 disposal fee, according to an offer document released by the fund in July ahead of its listing.

On August 16, DNZ’s shares debuted on the NZX at 99 cents, a premium to the 97 cent a share issue price in its $45 million capital raising. The shares rose about 2% to $1.04 today.

Of the new capital raised, $35 million was used to buy the management contract owned by chief executive Paul Duffy and Alastair Hassell, which had given them a right of veto over the investors' wishes.

DNZ was formed from 32 property syndicates, mostly single asset and/or single-tenant funds, established between 1996 and 2001.

Now, DNZ owns a property portfolio worth about $671million and an agreement to manage Diversified NZ Property Fund whose portfolio is worth about $100 million.

(BusinessDesk)

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